When is the German Prelim CPI and how could it affect EUR/USD?

German Prelim CPI Overview

Today's Eurozone economic docket headlines the release of Harmonized German prelim CPI data, up for release later this session at 1200 GMT. The headline CPI is expected to come in at 2.4% m/m and the yearly rate is seen a tad firmer at 1.2% in September from 1.0% previous. 

A minor improvement in Germany's regional CPIs released earlier today still points to an unconvincing picture of the harmonized German CPI readings.

In Hesse, MoM inflation for the month of September arrived at 0.0%, versus -0.1% prev. Meanwhile, in Bavaria, the September inflation came in at 0.0% MoM versus -0.1% last. In Saxony, September inflation MoM ticked lower to -0.1% versus -0.2% previous, while Brandenburg’s came in at -0.1% MoM vs. -0.2% prior. North Rhine Westphalia September CPI arrived at -0.1% MoM vs. 0.0% prior.

How could it affect EUR/USD?

FXStreet’s Analyst Yohay Elam offered key technical levels for trading EUR/USD on the CPI release: “It trades alongside downtrend support and below the broken uptrend resistance line. EUR/USD has some support at 1.0926, which was the previous 2019 low and a double-bottom. The current 2019 trough of 1.0905 is critical support. Lower, we find 1.0820 and 1.0780, dating back to 2017.

“Resistance awaits at 10965, which was a swing high last week and support beforehand. 1.0995 was a cushion earlier in September, and 1.1025 capped EUR/USD twice in recent weeks,” he adds further.

Key Notes

EUR/USD analysis: Showed some resilience near 1.0900 handle, focus shifts to German CPI

Drop in eurozone unemployment boosts service sector outlook - ING

The EUR/USD should closely follow important US macro releases this week

About the German Prelim CPI

The Germany consumer price index released by the Statistisches Bundesamt Deutschland measures the average price change for all goods and services purchased by households for consumption purposes. CPI is the main indicator to measure inflation and changes in purchasing trends. A high reading is positive (or Bullish) for the EUR, while a low reading is negative (or bearish).